In a sign that the recent focus on ad-blocking technology and moves to address online advertising fraud have been more than white noise, Israeli tech marketing play Adgorithms (ADGO:AIM) dives 58.7% to 52p on a significant profit warning.

Today's news flies in the face of our optimism about the story - which floated at 133p in June - and suggests developments such as Apple's (AAPL:NDQ) decision to add ad-blocking software in its App store is having a significant impact. Adgorithms - which has developed 'Albert' an artificial intelligence platform which manages online campaigns - says that 'in recent weeks the online advertising market has experienced severe disruption, resulting in a loss of supply for major online advertising exchanges and a drop in demand from major media buyers'.


As a result of what it describes as an 'significant effect on indirect revenue generation' it says earnings for the full year will be 'materially below market expectations'.

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House broker Liberum puts its price target under review and slashes its forecasts for 2015 revenues expected at $23 million against a previous forecast of $38.6 million and earnings before interest, tax, depreciation and amortisation (EBITDA) from $10 million to just $3 million.

We plan to look at the ad-blocking story and its impact on the ad tech sector in more detail in a forthcoming issue of Shares.

Issue Date: 09 Oct 2015